Civics
How Government Backstops are Destabilising the Financial System
I have already explained the root cause of why we are in a financial crisis. I have explained why talking heads talking about this being a liquidity problem are speaking bunk. Now, I am going to explain why the current actions of governments around the world are making things far worse.
The last few weeks have [...]
Liquidity, and the Game of Hot Potato
Please nip over at some point and have a look at my post about the root cause of the financial crisis. It will make this post make more sense.
I have already pointed out that the root of the problem is that many companies are functionally bankrupt because they are holding debt that has no value. [...]
The Root of the Problem, Counterfeit Debt
In other posts, I have written long expositions of why we are in a financial crisis. I have decided to write several short posts on the subject as well.
The root of the problem is counterfeit money. I’m sure that’s a statement worthy of a double take for most people, but it is true.
In today’s world, [...]
The Moment of Truth Approaches
Please note: the case for why I believe the following is laid out thoroughly here , here , and then here .
Well, I think the financial crisis is about ready to really get started.
So far, every government response to the crisis has been to make it worse, along with taking on debt. Taking on debt [...]
An Object Lesson: How Not to Treat a Depression
It seems that some UCLA professors have figured out why the Great Depression lasted 15 years.
And the answer iiiiss: "F.D.R!"
I am quite scared for the short term future of the USA. I look at the potential presidents we could end up with, and I am faced with either ignorance or mal-education, or both. Let’s hope [...]
A Worrying Development
It seems that banks are now so afraid that their counterparts are insolvent, that they are not accepting letters of credit from other banks. This is a bit like a bank refusing to cash a check because the check draws on the account of another bank.
This is bad, because letters of credit are used as [...]
Credit Default Swaps: Another Part of the Puzzle
Something I have not spoken about, because I considered it tangential to the root cause of the current problems with the financial system , is the role of Credit Default Swaps. Although the real problem is that people essentially counterfeited money, credit default swaps were sometimes used as part of this process.
A credit default swap [...]
The Economy. Where we are, why we’re here, and the future. (PART 3)
Continued from Part 2
So whatever happens, we’re going to hurt a lot?
Yes. It’s going to hurt. A deflationary crash would be quick, and extreme. People who watch too many Hollywood movies think this means blood in the streets, but it really just means a lot of hard working people will be on the streets trying [...]
The Economy. Where we are, why we’re here, and the future. (PART 2)
Continued from Part 1
Please explain your three possible futures.
In a deflationary crash, a portion of the money within an economy disappears. This means that money becomes scarce. This means that what money there is becomes very valuable. Because the money looks valuable, everything else looks cheap. That is, prices tend to go down, and people [...]
The Economy. Where we are, why we’re here, and the future. (PART 1)
Where are we, why are we here, and what will happen? This post is my attempt to answers these questions as simply as I can. I have broken this post into three parts for ease of presentation.
This post will link to several other posts that will expand on a point. I will add links as [...]
Thanks for stopping by. :) I imagine the recent news caused more folks like me to do a little research, and your post comes up very early on google (so well done there!).
It's amazing, the things I'm learning about the big, ugly web out there, an
Well, except for me. I just expressed my opinion of the jerks, and now I find folks are linking to that rant. I hope all this attention means criminal charges and prison time for Mccolo's owners etc. In the meantime keep spreading the word about thos
Lisa McSherry mentioned that you're looking for additional bloggers and thought I might suit for reviews and Pagan articles. Shall we discuss possibilities?
Hey John,
Nice to see GU coming along. Your 'proposal' makes a lot more sense now that I can see it in action. Very interesting set-up. I'm monitoring my traffic closely post-election. Merging The Big Stick into a larger network may make more sens
Go 'Dawgs, indeed. Richt's successes are more than admirable, and I've missed the hell out of him at the offensive helm these last eight years. Should be a great game, but I give the edge to the 'Dawgs. Even though Tim Tebow once touched a blind